Roku Inc., the maker of set-top boxes consumers use to watch Netflix Inc. and other streaming services, jumped after announcing plans to cut about 10% of its workforce, consolidate office space and review its content portfolio.
(Bloomberg) — Roku Inc., the maker of set-top boxes consumers use to watch Netflix Inc. and other streaming services, jumped after announcing plans to cut about 10% of its workforce, consolidate office space and review its content portfolio.
The San Jose, California-based company will also limit new hires as part of an effort to slow its growth in operating expenses, it said in a filing Wednesday. Roku expects to record charges of $45 million to $65 million tied to the job cuts, $160 million to $200 million from ceasing the use of office facilities and $55 million to $65 million from removing content from its streaming platform.Â
Roku is among the tech and media companies that have faced the prospect of weaker sales from a broad pullback in advertising. The company warned last year that it expected a tough economy to pressure consumers and advertiser spending. In March, it said that it would cut about 200 employees, or 6% of its workforce, as part of a restructuring.
Read More: Roku Craters on Weak Outlook, Adding to Advertising Worries
Shares gained as much as 12% in pre-market trading.Â
Excluding the expected charges, Roku raised its guidance for the third quarter. It now expects total net revenue of $835 million to $875 million from about $815 million previously. Its adjusted loss before interest, taxes, depreciation and amortization is seen at $40 million to $20 million for the third quarter.
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